Letters by a modern St. Ferdinand III about cults

Plenty of cults exist - every cult has its 'religious dogma', its idols, its 'prophets', its 'science', its 'proof' and its intolerant liturgy of demands. Cults everywhere: Islam, the State, the cult of Gay and Queer, Marxism, Darwin and Evolution, 'Science', Globaloneywarming, Changing Climate, Abortion....a nice variety for the human-hater, amoral, anti-rationalist to choose from. It is so much fun mocking them isn't it ?

Sunday, April 03, 2011

The Americans have no choice but to cut spending - by 25%.

But it won't happen.

by StFerdIII

Republicans propose rather modest cuts of 10% per annum on average to the massive US $ 4 trillion budget and its 10% deficit. With the Great Man in the White House and the Democrats controlling the Senate this proposal will not pass. But it is a small, very small step in the right political and philosophical direction. No doubt however, we can expect the left, the media and the clients of the state to howl in horror. How dare the 'right wing' demand a reduction in spending. The children's future and poor Mother earth will be eviscerated. No to mention minorities and the Union workers [or the working class as they are now called by clever folks]. The GOP budget cuts are in essence superficial. They will not prevent either a general bankruptcy or an escalation in future interest rates. US debt payments will consume 40% or some $1.6 Trillion per annum within 10 years. Interest rates will still go up thanks to inflation, but also nourished by the fear of debt default. The US currency with these cuts, would still fall under long-term pressure to the downside and depreciation. At least the $400 billion in reduced spending is something. But it matters not. It will never see the legislative light of day.

Keep in mind that roughly 30-50% of Medicaid and Medicare spending which totals $1.5 Trillion per annum is waste and fraud. That equates to almost $500 billion per annum in rationalization and savings. Even if you don't believe that, the minimum amount of fraud that even most socialists will own up to, is at least $150 billion for both socialized medical programs. The real figure is I would guess a lot closer to the $500 billion level. In any event, the problem is that the US needs a more immodest set of measures to cut waste, fraud, duplication and reduce government and its reach by at least 30% in the immediate short term. It is doubtful that either party has the political courage to do what is right. The struggle in the US to constrain government, deflate spending and rationalize government services, whilst not raising already high and extremely punitive tax levels, is one that every state is either going through, or will soon face as a set of challenges.

The plan would cap overall spending to a percentage of gross domestic product to "get government back to its historic size," below the current spending level of about 25% of gross domestic product, Mr. Ryan said. He said a specific limit hasn't been set yet.

Mr. Ryan said his proposal would also call for statutory caps on discretionary spending.

Mr. Ryan said overhauling the tax code by cutting tax rates and "broadening the base" will be central to his plan, but Mr. Ryan said he doesn't intend for a tax system overhaul to raise overall revenues.

"Pro-growth tax reform is a key ingredient to getting this economy working again," he said.

Historically the US federal government has been at around 19% of GDP in spending. Today it is at 25%. A return to some sort of sanity and historical level would entail a 25% reduction in spending immediately or some $1 Trillion per annum, not $400 billion. Even the $400 billion number will incite a flurry of insults and slander by the cult members of statism and the media. One has to assume that the world before massive statism, with government owning collectively 45% of our GDP, must have been an age of unmitigated red-in-claw barbarism. Individualism, lower tax rates, reduced government – all of these are the new 'extremism'. I suppose Communism is the moral and economic nirvana coveted by the champions of the state and its relentless and quite dangerous expansion. That experiment has never really worked out too well, and seems to accumulate a large pile of dead bodies in the process as well.